The stocks of Verizon Communications Inc. VZ, Intel Corp. INTC and Dow Inc. DOW are the biggest “dogs” of the Dow Jones Industrial Average DJIA as 2022 comes to an end. A Wall Street trading strategy known as “Dogs of the Dow” calls for the buying of the top-10 highest yielding stocks in the Dow industrials at the close of the last trading day of each year. The idea to pick up yield, but also a bet on a bounce, as the highest yielders are typically among the worst performers of the year. Keep in mind that MarketWatch contributor Mark Hulbert has written that history shows that strategy tends to underperform the Dow industrials. In afternoon trading on Friday, Verizon had a dividend yield of 6.67%, Intel’s was 5.58% and Dow’s was 5.57%. That compares with the implied dividend yield for the S&P 500 SPX of 1.77%, according to FactSet. Meanwhile, shares of Verizon have lost 24.7% in 2022, Intel has dropped 49.2% and Dow has declined 11.3% while the Dow industrials have fallen 9.3%. Of the Dow components that don’t pay dividends, shares of Boeing Co. BA have slipped 6.1% this year, Walt Disney Co. DIS has slid 44.7% and Salesforce Inc. CRM has given up 48.4%.
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